PayPal Lays Off Employees As Growth Stagnates After Pandemic Recovery, Supply Chain Disruptions

PayPal Holdings, Inc PYPL began laying off risk management and operations employees working in Chicago, Omaha, Nebraska, and Chandler, Arizona, this week, Bloomberg reports.
PayPal ended 2021 with 30,900 employees, a 33% increase from pre-pandemic levels.
PayPal incurred $20 million in costs tied to its restructuring in the first three months of the year. This year, PayPal looks to incur an additional $100 million in restructuring charges.
The job cuts will help it save about $260 million annually in employee-related costs.
PayPal previously announced plans to permanently lay off over 80 people in its headquarters in San Jose, California.
PayPal aims to drive its operating leverage following a transactional slowdown in its platform in recent quarters after the pandemic recovery.
PayPal’s platform spending grew by only 15% in the first quarter to $323 billion, the lowest in five years. Supply chain disruptions impeded e-commerce purchases, and more consumers returned to in-store shopping.
The firm’s former parent company eBay Inc EBAY, also rapidly migrated payments away from PayPal’s platform.
Price Action: PYPL shares traded higher by 1.39% at $81.54 premarket on the last check Friday.